A recent coronavirus outbreak at the Chinese port of Yantian is set to cause a bigger disruption than the Suez Canal blockage in March. The subsequent shortages could spike already rising inflation.
Up to 5% of global freight capacity is being held up in China following a recent COVID-19 outbreak at the country’s largest container terminal, a German think tank warned this week.
The bottleneck comes as the global economy is already smarting from major delays to shipping caused by coronavirus lockdowns around the world.
Yantian port, in China’s southern trade hub Shenzhen, stopped accepting export containers last month after a local COVID infection cluster involving port workers.
New data from the Kiel Institute for the World Economy (IfW) published Tuesday showed the strain the new backlog could have on the global economy.
It comes at a time of shortages of key commodities and surging demand which have sent inflation racing…